PROJECT REPORT

ON
Fullerton India Credit Company
SUBMITTED TO LOVELY PROFESSIONAL
UNIVERSITY

faculty guide:
Miss swati mehta

SUBMITTED BY:
VINAY
rEgd. No. 10807016
mba, lsm

1
 ACKNOWLEDGEMENT

It gives me immense pleasure to express our sincere and whole hearted

sense of gratitude to my guide for their invaluable and untiring guidance
and supervision throughout my study. To derive benefits of their
enormous experience, it is a matter of great privilege for me. I take this
opportunity to express my sincere thanks and full appreciation to my
faculty guide or Lect. Miss Swati Mehta and my Company Manager Mr.
Sandeep Aggrwal who extended their wholehearted cooperation, moral
support and rendering ungrudging assistance whenever and whenever
needs. I wish them very best in their life.

Table of contents

1. Acknowledgement - 2

2
 2. Research Methodology - 4

3. Intoduction - 5

4. Proposition and values - 12

5. Review and litrature - 16

6. Analysis of data - 19

7. Sugession - 44

8. References - 46

9. Annexure - 47

Research Methodology
Research Methodology is a way to systematically solve the research

3
problem. The Research Methodology includes the various methods and techniques
for conducting a Research.
This project comes under the head of “Marketing Research”. The “Marketing
Research” is the systematic design, collection, analysis and reporting of data and
finding relevant solution to a specific marketing situation or problem”.
Sampling Plan – Sampling can be defined as the section of some part of an
aggregate or totality on the basis of which judgment or an inference about
aggregate or totality is made. The sampling plan helps in decision making in the
following areas:
• Sample size – Sample size refers to the total numbers of items about which
the information is desired. The sample size of the study is 100.
• Data Collection - Information has been collected from both Primary and
Secondary Data.
Primary Data – Primary data are those, which are collected for the first time,
and thus happen to be original in character. Primary Data has been collected in this
study by conducting survey through Questionnaire.
Secondary Data – Secondary Data are those which have already been collected
by someone else and which already had been passed through the statistical process.
Secondary data has been collected
in this study through Magazines, Web sites, Newspaper and Journals.

Introduction

4
 Fullerton India Credit Company Limited(FICCL) is a Non Banking Finance
Company (NBFC) with an “A” category license, issued by the Reserve Bank of
India. It is a fully owned subsidiary of “Fullerton Financial Holdings Pvt ltd.”
Singapore. The Company was established in 1994. In December 2005 the
Management of this Company changed, with an investor making an investment in
the equity capital of this Company under the Foreign Direct Investment Policy.
99.99% of the share capital of FICCL is held by Angelica Investment Pte. Ltd.,
Singapore. Then they began their operations with new management in India in
January 2006. The new management team is headed by a professional CEO and
Managing Director, supported by a team of professionals, with expertise in area of
Consumer Finance, Middle market lending and SME businesses. These
professionals have worked in various Banks and Financial institutions, and have
good commercial experience.
The company operates on a wide range of financial products and services for
customers related to the retail markets and commercial mass markets. The
company provides financial support to its clients through basically two policies
namely Fullerton India Parivaar and Fullerton India Vyapar. Fullerton India
Parivaar provides financial security to salaried individuals where as Fullerton
India Vyapaar offers financial support to people involved in small scale businesses
or firms of their own. The company follows a customer centric, community based
business model, and is committed to provide quality financial services to the
growing Indian masses. The Company believes in a branch centric community led
relationship based approach in meeting customer needs rather than using the
services of a third party or a vendor such as Direct Selling Agents. Under the
organizational structure, the Company has in each of its branches, a team of
Relationship Managers and Officers who meet customers to understand their

5
business or profession and credit requirements.
The Company being in the financial sector provides Loans and financial services
to customers such as Individuals, Professionals, Partnership firms, Sole
proprietorship and Small and Medium companies. To service its customers, the
Company has two major divisions Vyapaar and Parivaar.

Products Offered By the Company

Fullerton India Parivaar has introduced a new concept in the Indian market.
The company have branches, which cater only to the specific needs of Salaried
Individuals. Its Parivaar branches provide customized products and solutions,
especially designed keeping in mind the unique circumstances and requirements of
this segment.
The Parivaar Loans cover a wise range of products, which include:
• Unsecured Personal Loans
• Secured Loans
• Home Finance
• Home Equity Loans

Unsecured Personal Loans

An unsecured loan is a loan that is not backed by collateral, it is also known as a
signature loan or personal loan. Unsecured loans are based solely upon the
borrower's credit rating. An unsecured loan is considered much cheaper and
carries less risk to the borrower.
Types of Unsecured loans
There are three types of unsecured loans.

6
 • First is a personal unsecured loan, which means a loan that, a person
individually responsible for the repayment.
• Second is an unsecured business loan which leaves the business responsible
for the repayment.
• Third is an unsecured business loan with a personal guarantee. In this type of
unsecured loan the borrower is the business, but guarantor will be the payer
if the business defaults to pay the loan.

Secured Loans
A secured loan is a loan in which the borrower pledges some asset (e.g. a car
or property) as collateral for the loan, which then becomes a secured debt owed to
the creditor who gives the loan. The debt is thus secured against the collateral. In
any event if the borrower defaults to repay, then the creditor takes possession of
the asset used as collateral and may sell it to satisfy the debt by regaining the
amount originally lent to the borrower. There are two purposes for a loan secured
by debt. In the first purpose, by extending the loan through securing the debt, the
creditor is relieved of most of the financial risks involved because it allows the
creditor to take the property in the event that the debt is not properly repaid. In
exchange, this permits the second purpose where the debtors may receive loans on
more favorable terms than that available for unsecured debt, or to be extended
credit under circumstances when credit under terms of unsecured debt would not
be extended at all. The creditor may offer a loan with attractive interest rates and
repaymentperiods for the secured debt.

Home Equity Loan

A home equity loan (sometimes abbreviated HEL) is a type of loan in which
7
the borrower uses the equity in their home as collateral. These loans are sometimes
useful to help finance major home repairs, medical bills or college education. A
home equity loan creates a lien against the borrower's house, and reduces actual
home equity.
Types of Home Equity Loan
Closed end home equity loan: The borrower receives a lump sum at the time of the
closing and cannot borrow further. The maximum amount of money that can be
borrowed is determined by variables including credit history, income, and the
appraised value of the collateral, among others. It is common to be able to borrow
up to 100% of the appraised value of the home, less any liens, although there are
lenders that will go above 100% when doing over-equity loans. However, state law
governs in this area; for example, Texas (which was, for many years, the only state
to not allow home equity loans) only allows borrowing up to 80% of equity.
Closed-end home equity loans generally have fixed rates and can be amortized for
periods usually up to 15 years. Some home equity loans offer reduced amortization
whereby at the end of the term, a balloon payment is due. These larger lump-sum
payments can be avoided by paying above the minimum payment or refinancing
the loan.

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 Open end home equity loan: This is a revolving credit loan, also referred to as a
home equity line of credit, where the borrower can choose when and how often
to borrow against the equity in the property, with the lender setting an initial
limit to the credit line based on criteria similar to those used for closed-end
loans. Like the closed-end loan, it may be possible to borrow up to 100% of the
value of a home, less any liens. These lines of credit are available up to 30
years, usually at a variable interest rate. The minimum monthly payment can
be as low as only the interest that is due.
Typically, the interest rate is based on the Prime rate plus a margin. Fullerton
India Vyapaar strives to improve the business and lives of the small business
community. Their business is focused only on small establishments with a turnover
of less than Rs.25 Mn p.a.

Relationship Approach of the Company

The Company believes in a branch centric community led Relationship
based approach in meeting customer needs rather than using the services of a third
party or a vendor such as Direct Selling Agents. Under the organizational
structure, the Company has in each of it’s branches, a team of Relationship
Managers and Officers who meet customers to understand their business or
profession and their credit requirements. Both the Vyapaar and Parivaar divisions
of the Company leverage the relationship approach in establishing a credit
relationship between the Company and the borrower. Loans are granted on the
basis of completed applications, completing the Know-Your-Customer (KYC)
norms, discussion with the customers about the terms of their loan, rate of interest,

9
repayment arrangement, etc. The branch only services customers in a limited area
around the physical location of the branch.
The Company’s general policy is to be reasonable, transparent and fair with its
customers.
The Company follows established procedures, understands customer requirements
and is reasonable in all its dealings with customers. The design of the application
forms and the relationship based processes, are to make sure that the Company is
transparent in its dealings and transactions. It is with this in mind that the
Company has set up the following guidelines as a Fair Practices Code in dealing
with its customers

Fair Practices Code and Guidelines in Company

The following are the guidelines as a fair practices code in dealing with its
customer.
1. The current application forms capture full details of the customer i.e. age,
profession, business, office & residential address, income details and other
requirements. The application forms indicate the criteria for minimum and
maximum finance available for personal loans, automobile loans. The
application forms specify the documentation requirements in addition to
initial scrutiny of documents submitted. The Company may call for
additional documents for verification purposes. The application forms are
numbered and one section of the form is given back to the Customer as an
acknowledgement. The Company keeps a record of acceptance of terms and
conditions by keeping the original agreements signed by the customer and
provides a copy of the Agreement or terms and conditions to its customers.
2. All applications are verified and processed within a reasonable period of

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 time. All applications would go through a De-duplication and Fraud Check
though internally established procedures of the Company, before loans are
processed or approved. The applications which do not satisfy the De-
duplication or Fraud Check criteria, would be automatically rejected.
Documents needed from the customers will be collected before disbursement
of loan.
3. The terms and conditions of the loan are clearly mentioned in the Loan
Agreement. The Loan Agreement would specify the tenure, the amount of the
loan, applicable rate of interest, the Equated Monthly Installment (EMI)
payments and other fees charged by the Company. Processing fee, if collected
would be clearly mentioned to the customer. A Welcome Letter is also sent to
our customers with Key details & Repayment Schedule which mentions the
EMIs, split by Principal and Interest components.
4. In the event that the loan is rejected, the Company would communicate to the
Customer verbally or in writing about the rejection. The Relationship
Managers/ Officers are empowered to convey the information of the rejection
of the loan verbally.
5. Customers at the time of disbursement of loan are advised about facilities
available to them and repayments they need to make from time to time. In
any event the Company undertakes to give full details of the loan, its current
status, monthly or quarterly repayments required from time to time on the
basis of request made by the Customers.
6. The Company would release all the securities to the customer once the loan is
repaid and no dues are outstanding to the Company.
7. In case of request of a transfer of a loan account from one borrower or a
lender to another Company or a Bank, the transfer would be completed

11
 within 21 days of such a request, provided the customer pays interest and all
Company dues up to date.
8. As far as recoveries of loans are concerned the Company would follow its
own Collection Policy and procedure which is designed to be customer
friendly. Under the Company’s collection policy detailed guidelines are laid
down for following the Code of Conduct, with delinquent customers. Our
collection procedures are constantly checked from a customer’s point of view.
9. The Company has a detailed policy on customer satisfaction and complaints
received. As part of the Customer satisfaction assessment, detailed analysis of
customer preferences and their grievances or responses are taken into
account in improving our operations constantly. Complaints received are
personally attended to by the Branch Manager and resolutions are tracked
by centrally by the Corporate Office in Mumbai. All grievances and
complaints and resolutions made are presented regularly to the Board of
Directors for their review.

Fullerton India's Propositions and Values

Propositions

• The biggest proposition of Fullerton India is customer focus, both, in product

design/ customization and service. As an organization, they are structured

not around products but along customer segments. They have separate

12
 verticals for the Salaried Individuals (Parivaar) and for Small sized shop
owners & Entrepreneurs (Vyapaar).
• This model lends itself to better understanding of our customers' financial

situation and for a better products offering to them. With this holistic
understanding of the customers, the company is also able to combine secured
and unsecured products and structure the loan in a manner which is ideally
suited to meet individual customer requirements.
• The company employed Relationship Officers to service the needs of the

customers. There are no agents or other intermediaries, coming in between

the customer and the company. These Relationship Officers are the end-to-
end solution providers and act as a single point of contact" for all Product,
Process and Service related needs of the customer.
• The branches do business only within a 5 km radius. The customers' office or

residence has to be within the branch coverage area. This closer proximity of
the customers to the branches ensures better understanding of the local
environment and immediate situation.
• The company participates actively in serving the community in and around

the vicinity of their branch. The interest of company in the locality extends
beyond just a business relationship. The company believes in participating in
other aspects of development of the community as well.
• The business envisages setting up branches with employees dealing directly

with the customers. This offering has elicited an enthusiastic response from
customers as it gives higher degree of transparency and faster value delivery.
• The relationship model includes a deep assessment of a customers' business

resulting in an omnibus facility with a flexible combination of usage in parts,

flexibility between a combination of short and long tenures, and from

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 unsecured to partially secured and fully secured facilities.
• The facility set up for a customer is based on his risk profile, repayment

capacity, as well as proposed expansion plan. A Relationship Officer is

assigned to address incremental product needs, as well as for service
requirements, through a process of continuous engagement. The business
strives to deliver lifelong financing support and regular facility enhancement,
based on business growth.
• Businesses are built on people, and the company hires relevant local talent to

serve the market, so that there is a connect between the employees and
customers.
• The business wishes to bring a full service proposition encompassing loans

and liabilities to the small business owners. Besides the variety of loans, life
insurance has been introduced which will also be delivered through the
branch based Relationship Officers.
• The business uses advanced technology tools to record customer history, and

leverage track record to enhance credit exposure in line with the customer
business cycle. This ensures continuous support through seasonal peaks.

Objectives of the Study

The study was conducted to aiming at fulfilling the following objectives:
• To find the preferences of customer regarding various types of loan: This
objective focused on the judgment of customer preferences regarding various
types of loan provided by Fullerton India such as Secured Loan, Unsecured
loans and Home Equity Loan. The result of this objective will provide the
most preferable type of loan among various types of loan provided by

14
 Fullerton India. So this objective will help the company to Focus on most
customer’s preferable area.
• To know the amount of loan generally availed by the respondents: This
objective include the study of the amount of loan which is generally
borrowed by the customers.
• To study the Advertising effectiveness in creating awareness among the
public: This objective will help to judge the effectiveness of advertising
strategy used by Fullerton India to create the awareness among the potential
customer about the products and services offered by the company.
• To study the satisfaction level of customer regarding different loans schemes
provided by Fullerton India Credit Company Ltd: The final objective of the
research is to study the satisfaction level of the customer who borrowed fund
under particular scheme offered by Fullerton India.

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Review of Literature
Trevor Richards (1996 ) Begins by defining the conversion model - a
model used as a marketing tool to identify commitment to different brands of goods
or services. Argues that there is a difference between committed and uncommitted
customers which is not related to service quality and that this makes it difficult to
predict customer retention based solely on these grounds. Other factors also drive
commitment. Presents two short case studies based on these assumptions.
Kurt Matzler, Hans H. Hinterhuber, Franz Bailom, Elmar Sauerwein (1996) How
to delight your customers, Asks which product qualities are decisive for the
satisfaction of the customer and which features merely prevent dissatisfaction.
Proposes Kano’s model of customer satisfaction for answering these questions and
for drawing conclusions for the management of product development. In his model,
Kano distinguishes between three types of product requirement which influence
customer satisfaction in different ways when met: must-be requirements, which are
basic criteria of a product - if these requirements are not fulfilled, the customer will
be extremely dissatisfied; one-dimensional requirements, where customer
satisfaction is proportional to the level of fulfillment, the higher the customer’s
satisfaction and vice versa; and attractive requirements, which are the product
criteria which have the greatest influence on how satisfied a customer will be with a
given product. Attractive requirements are neither explicitly expressed nor
expected by the customer.
Antony Beckett, Paul Hewer, Barry Howcroft (2000) An exposition of
consumer behaviour in the financial services industry, Deregulation and the

16
emergence of new forms of technology have created highly competitive market
conditions which have had a critical impact upon consumer behaviour. Bank
providers must, therefore, attempt to better understand their customers in an
attempt not only to anticipate but also to influence and determine consumer buying
behaviour. The paper accordingly presents and develops a model which attempts to
articulate and classify consumer behaviour in the purchasing of financial products
and services. The theoretical insights generated by this model are then used to
examine qualitative research data gained from focus group discussions on
consumers’ attitudes to their financial providers and their financial products.
Finally, these findings are examined for the potential insights they provide to bank
providers attempting to identify appropriate strategies which are conducive to
increased customer retention and profitability.
Randi Priluck (2003) Relationship marketing can mitigate
product and service failures, Relationship marketing is beneficial to firms because
it can foster customer loyalty and re-patronage behavior. Consumers engaged in
relational exchanges are more satisfied than those in discrete transactions because
of the ease and psychological comfort of purchasing from a familiar company. This
research investigates the power of relationship marketing to mitigate in two
situations. One exposes consumers to poor product performance and examines
their levels of trust, commitment and satisfaction. The second presents a product
failure that is followed by a lapse in service recovery and measures satisfaction and
exit behavior. The findings of both studies suggest that relationships make up for
increasingly strong negative encounters, providing a level of insulation for the
marketer. Implications for service firms are discussed.
Adam Lindgreen (2004) Few published empirical studies have
examined the design, implementation, and monitoring of customer relationship

17
management (CRM) programmes at a practical level. The article develops a single
embedded case study on Dagbladet Børsen (http://www.borsen.dk), the largest
publisher of business-related materials in Scandinavia. The article first introduces
the reader to the philosophy behind CRM. Following that, it considers key areas of
a four-year long CRM programme and offer insights into the procedure that has
been developed by SJP (http://www.sjp.dk), the consulting firm that was brought in
to assist. The procedure is organized around eight areas: commitment of senior
management, situation report, analysis, strategy formulation, implementation,
management development, employee involvement, and evaluation of loyalty-
building processes. Over the four-year long CRM programme, Dagbladet Børsen
increased its newspaper circulation by 40 per cent and advertising revenue by 50
per cent, while total revenue more than doubled.

Ka-shing Woo, Henry K.Y. Fock (2004 ) The axiom that “the customer
is always right” is no longer valid when companies realize that some of their
customers are not right at all. Paying too much attention to these so-called “wrong”
customers may jeopardize a company's survival and profitability. Right customers
have to be retained, “at-risk” right customers have to be recovered, and wrong
customers have to be divested. This study attempts to operationalize the concept of
customer “rightness” and “wrongness” in terms of different configurations of
attribute satisfaction and overall satisfaction. Based on the result of a discriminant
analysis of satisfaction survey data, customers with different configurations of
attribute satisfaction and overall satisfaction are re-examined in terms of switching
intention, behavioral patterns and demographic characteristics in order to
highlight any significant descriptor.
Susan E. Rau (2005) Building great products can be a reality for any

18
company that takes the time and effort to create and execute the linkages between:
winning strategy; the role of products and services; the product building blocks;
and, linkages to customer needs. In fact, our research and work with clients
suggests that a lack of alignment of these factors is the number one cause for the
poor performance of many new products. This article defines for the reader the
four winning strategy choices a company has – Product Leader, Distribution Giant,
Innovation Superstar and Customer Lover and how each of these models puts a
different emphasis on products and services. Once a company has selected a
winning strategy, executing that strategy successfully requires adherence to the
business model, including aligning product and services, customer imperatives and
financial realities to that winning strategy model. Losing focus and drifting away
from the chosen strategy or interspersing, for example, the product priorities from
one winning strategy with the customer imperatives from another is a recipe for
lackluster earnings and poor stock performance. Readers will learn how to
outsmart the competition and build products that really win in the marketplace.

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Analysis of Data
This research is based on primary and secondary data i.e. collected through
primary and secondary sources. The primary data is collected with the help of
questionnaire survey and the secondary data is collected from News papers,
Internet, and Magazines.
Therefore, the analysis of data is categorised under following two sub categories
that are:-
• Analysis of Primary Data
• Analysis of Secondary Data
Firstly the analysis of primary data includes the analysis of data collected through
questionnaire. The analysis of Primary Data is as follow:-
Parameters selected for Collecting Primary Data
1. Age of the Respondent

Age 18-28yrs 28-38 yrs 38-50 yrs More than

50
Percentage 30% 26% 24% 20.00%

The respondent of research comprises of 30% of 18-28 years, 26% of 28-38 years,
24% of 38-50 years and 20% of more than 50 years. This classification of age group
is required to know the perception of person for taking loan at different stage of
life. Generally Fullerton India provides loan to salaried individuals and new
entrepreneurs, therefore our sample size is consists 56% of respondents lies
between the age group of 18 to 38years. After setting the age group composition for
survey the next parameter for differentiating respondent is Income level.

20
 Percentage

40%
30%
20% Percentage
10%
0%
18- 28-38 38-50 More
28yrs yrs yrs than
50

2. Annual Income of the Respondent

Income Below 1 Lac 1-2 Lac 2-5 Lakh Above 5 Lakh

%age 15% 40% 35% 10%

Second classification of respondent is based on the basis of their annual income.

This classification is done to know that mostly which income level people have
more demand for loan. This research is targeted to know the demand of loan by
salaried individual and small entrepreneurs, therefore the sample size consists of
15% Lower Income level and 40% middle income level for judging the demand of
salaried individual and to judge the demand of small entrepreneurs the sample size
consists of 35% upper middle income level and 10% that are having annual
income more than 5 lakh.

21
 P e rc e n t a g e

50%
40%
30%
P e rc e n t a g e
20%
10%
0%
B e lo w 1 1 -2 2 -5 A b o ve 5
Lakh Lakh Lakh Lakh

3. Occupation of the Respondent

Occupation Government Private Employee Businessman

Employee
Percentage 30.00% 25.00% 45.00%

The third important consideration which helps to identify that whether the
respondent is salaried individual or small entrepreneurs is occupation. The
occupation comprises of Government Employee, private employee that fall into
22
salaried individual category and third component of occupation is Businessman
which indicate small entrepreneurs. The weight provided to salaried individual i.e.
to Government and private employee is 55% because Fullerton offered more
product to this category and For small entrepreneurs the weight assigned is 45% ,
because this weight can give justifiable result to divide the demand of loan on the
basis of occupation.

P e rc entag e

50 .00 %
40 .00 %
30 .00 % P e rc e ntage
20 .00 %
10 .00 %
0 .00 %
Governmen

Employee
t Employee

Businessm
Private

an

4. From which source you knew about the various schemes of Fullerton India?

Sources News Paper Television Internet Friends

23
 Media
Percentage 44% 12% 20% 24%

This question is asked in order to know the effectiveness of the advertisement

strategy adopted by Fullerton India. The result found by the survey shows that
most of the customer knew about the various loan schemes through news paper &
internet. Therefore company can make more use of the news paper and internet to
increase its customer base. Secondly the company also getting the benefit of its
existing customer to advertise its product, because 24% of customer knew about
the schemes of Fullerton India through their friends who had taken loan from
Fullerton India.
Fullerton India is not making use of Television media frequently because it is very
costly, therefore resultantly it contributed only 12% in creating the awareness
among the customer regarding various schemes of Fullerton India.

24
 P erc entage

50%
40%
30%
P erc entage
20%
10%
0%
Paper
News

Internet
Television

Friends
Media

5. Which type of loan you availed from Fullerton India?

Types Secured Loan Unsecured Home Loan Home equity

Loan loan
Percentage 42% 18% 28% 12%
The most preferred loan by customer is secured loan. This loan is easily available to
customer because there is less risk faced by Fullerton in giving this type of loan as
it is secured by some assets of customer. Second more preferred loan than secured
loan is Home loan which is availed by 28% of customer other loan are availed by
18% and 12% of sample size.

25
 P e rc e n t a g e

50%
40%
30% P e rc e n t a g e
20%
10%
0%
Home
Loan
Secured
Loan

6. Through which scheme of Fullerton India you availed loan?

Type Parivaar Vyapaar

Percentage 62% 38%

The Fullerton India offers different types of loans under two main scheme that are
Parivaar and Vyapaar. The Parivaar scheme is for salaried individual where as

26
Vyapaar scheme available for small entrepreneurs. The result of survey shows that
most of customer availed loan under parivaar scheme i.e 62% as compare to
Vyapaar. Therefore it shows that, the salaried individual are more important for
company, so the company is require to focus on this core product and
simultaneously it require to improve the promotion of its Vyapaar scheme to
attract more customers.

P e rc e n t a g e

80%

60%

40% P e rc e n t a g e
20%

0%
P a riva a r V yapaar

27
7. What is your amount of loan?

Amount of Loan %age of

Respondents
0 - 2,00,000 28%
2,00,000-5,00,000 45%
5,00,000- 32%
10,00,000
10,00,000 or 5%
more

This question is asked to know that generally how much amount of loan is availed
by the customer. The result of survey shows that 45% customer availed 2 lakh to 5
lakh loan, 32% availed 5 to 10 lakh, 28% availed loan up to Rs 2lakh and there are
very less customer who availed loan more than 10 lakh. So the Fullerton India is
famous for medium loan, but there are very less number of customer for large
amount loan. Therefore the company needs to focus on the schemes for large
amount loan to become famous in this segment also.

28
 %age of Respondents

50%
40%
30% %age of
20% Respondents
10%
0% 2,00,000-
2,00,000

10,00,000

10,00,000
5,00,000-
5,00,000

or more
0-

8. What is the repayment period of your loan?

Number of Years percentage of Respondents

Below 2 Years 19%
2-5 Years 43%
5-10 Years 28%
More than 10 Years 10%

The profit of the company depends on the repayment period, because if the
repayment period is long than customer will pay interest for long period so it
beneficial for company to issue loan for long repayment period. In the survey
itb was found that 19% customer availed loan for maturity period less than 2

29
 years, 43% of customer availed loan for 2 to 5 years, 28% availed for 5 to 10
years and only 10 % availed for the repayment period more than 10years. The
most preferred repayment period is 2 to 5 years. The company will earn more
sustainable profit for long period if it increases the customer who avail loan for
long maturity period, therefore the company need to formulate some attractive
scheme to attract the customer towards long repayment period loan.

Percentage of Respondents

50%
40%
30% Percentage of
20% Respondents
10%
0%
Below 2 2-5 5-10 More
Years Years Years than 10
Years

9. Are you satisfied with the rate of interest charge by Fullerton India?

Yes No
67% 33%

The Fullerton India charging different rate of interest for different type of loan.

30
The rate of interest of unsecured loan is quite high because of risky nature whereas
secured loan is available at less rate of interest. Therefore there are some customers
who are not satisfied with the rate of interest. The sample size consists of 67%
customers who are satisfied with the rate of interest charging by Fullerton India
and only 33% are unsatisfied.

80%
70%
60%
50%
40% S e r ie s 1
30%
20%
10%
0%
Y es No

10. What are the main factors which persuade you to avail loan
from Fullerton India?
31
 Factors No. Respondents
Easy Repayment 19%
Easy Documentation 26%
Attractive Rate of Interest 29%
Quick Processing 17%
Others 9%

This question is considered to know that which service of Fullerton India attract
more and more customer. The result shows that an attractive rate of interest is the
most important factor responsible for attracting customer toward Fullerton India,
then easy documentation, easy repayment and quick processing is also work as
supplement to attract customer for availing loan from Fullerton India. Only 9%
customers are fall in the category of others who availed loan due to the references
of some person, such as friends and relatives.

32
 No. Respondents

40%
30%
20% No. Respondents
10%
0%
Attractive
Repayment

Others
Rate of
Interest
Easy

11. What grade you will assign to the services of Fullerton India?

Grades Excellent Very Good Good Fair Poor

Percentage 12% 47% 31% 6% 4%

This result shows the perception of different customer toward services of Fullerton
India. The 12 % customer thinks that the service delivery of Fullerton India is
excellent whereas 47% thinks its service delivery is very good, 31% thinks that
services delivery is only good and 6% thinks that the service delivery of Fullerton
India is fair, but as nobody can satisfy everyone at same time, so this is same for
Fullerton India, 4%customer are not satisfied with the services of Fullerton India.

33
 P e rc e n t a g e

50%
40%
30% P e rc e n t a g e
20%
10%
0%
ir

or
od

Fa

Po
Ve nt
od
Go
l le

Go
ce
Ex

ry

34
Analysis of Secondary Data
Analysis of secondary data includes the review of the news and articles published in
news paper or magazines regarding Fullerton India Credit Company Limited.

Article 1
Fullerton India Credit adopts Newgen’s BPM solution
Newgen Software Technologies Limited announced the successful implementation of
its BPM solution (based on Newgen OmniFlow™) at Fullerton India Credit Company
Limited (FICCL)..
NEWGEN SOFTWARE Technologies Limited, a market leader in Business
Process Management (BPM) and Enterprise Content Management (ECM), with
impeccable track record of implementing mission-critical workflow and document
imaging solutions, announced the successful implementation of its BPM solution
(based on Newgen OmniFlow™) at Fullerton India Credit Company Limited
(FICCL). FICCL, one of the largest capitalised Non Banking Finance Companies
(NBFC) in the country has taken a steep target of setting up a total of 800 branches
in the country by the end of 2009 (Till now, the company has set up over 650
branches).
Speaking of Newgen’s solution that has helped the FICCL in gearing up to meet its
targets, Pramod Krishnamurthy, executive vice president, technology, FICCL said,
“One of the key factors that has accounted for Fullerton India’s rapid growth and
ramping up of operations is the excellent support provided by the Newgen team.
Their state of the art workflow routing and imaging system (Omniflow) has met
our dynamic requirements very well; it has enabled us to provide high level of
customer service internally and externally. We look forward to a continued long-
term association with them as a valuable partner in our growth.”

35
Newgen’s implementation at FICCL covers the entire gamut of processes including
loan origination and booking, collections and prospect tracking, loan against gold
and early warning processes. FICCL currently has more than 350 branches across
the country. Number of concurrent users (users across the branches who can be
simultaneously logged into the system), which is already over 900, is expected to
grow up to 1500 in near future.
Speaking of the successful implementation at FICCL, Punit Jain, vice president,
sales and marketing, Newgen Software Technologies, said, “In line with our
objective to be an end-to-end BPM solution provider, our solution has offered
FICCL continuous process improvement, rapid results, visibility and control. With
this implementation, we are glad to support FICCL in reaching its steep targets
and establishing a strengthened network in India.”

Newgen OmniFlow™ 5.0 is a platform independent, scalable BPM solution that

enables automation of organisational business processes. It is a complete software
solution to design, deploy, modify, monitor and manage business processes,
involving minimal programming effort, and is easily deployable thereby enabling
enterprises to streamline their business processes for greater efficiencies. Built
using open technologies Newgen OmniFlow™ has seamless integration abilities
allowing it to be introduced into almost any existing IT infrastructure.
About Fullerton India Credit Company Limited
Fullerton India Credit Company Limited, a fully owned subsidiary of Fullerton
Financial Holdings, Singapore, is the fastest growing financial services company in
India with an equity capital base of US$150 million (Rs 7 billion). The company
follows a relationship led, community based business model with close proximity
and engagement with the customer to effectively reach out to them. In a short span

36
of time the company has disbursed over 1800 crore rupees, opened more than 400
branches spread across 150 locations and has more than 8000 employees on its
rolls.
About Newgen Software
Newgen Software Technologies Limited is a market leader in Business Process
Management (BPM) and Enterprise Content Management (ECM), with
impeccable track record of implementing mission-critical workflow and document
imaging solutions. We have a global footprint, with an installation base of more
than 700 customers in over 25 countries. More than 40 of our customers are Global
Fortune 500 companies. Having domain expertise in industry verticals such as
Banking, Financial Services, Insurance, BPO, Telecom, e-Governance and
manufacturing among others, we are known as one of the fastest implementers of
BPM solutions in the world.
The sales and support offices span across major cities in Asia, North America,
Europe, Africa and the Middle East.
Winner of several awards such as ‘Frost and Sullivan’s Market Leadership Award
for Document Management and Workflow Software & Services for 2006’ and
‘Distinguished Application Product Company’ by NASSCOM, Newgen Software is
an ISO 9001:2000 certified and CMM Level 4 company.

37
Review of Article: 1
The first review based on the article published in web site BPM.com.
This article talks about the adoption of Newgen’s BPM solution for their Business
process management. NEWGEN SOFTWARE Technologies Limited is a market
leader in Business Process Management (BPM) and Enterprise Content
Management (ECM), with impeccable track record of implementing mission-
critical workflow and document imaging solutions, has announced the successful
implementation of its BPM solution (based on Newgen OmniFlow™) at “Fullerton
India Credit Company Limited”. Fullerton India has taken this step to achieve its
target of setting up a total of 800 branches in the country by the end of 2009 (Till
now, the company has set up over 650 branches).
Newgen’s solution will help the Fullerton India to meet its targets and an another
importance of this step is rapid growth. It also enabling Fullerton India to provide
high level of customer service internally and externally.
Newgen’s implementation at FICCL covers the entire gamut of processes including
loan origination and booking, collections and prospect tracking, loan against gold
and early warning processes.

Article: 2
Fullerton India Credit Company Limited (FICCL) has bagged the Gold award
for Excellence in Business Process Management (BPM) and Workflow with
Newgen Software’s BPM solutions. The company has bagged the award for the
Pacific Rim region.
The Global Awards for Excellence in BPM and Workflow recognizes user
organizations that have demonstrably excelled in implementing innovative

38
business process solutions to meet strategic business objectives. The awards are
given for five geographical regions: Europe, Middle East Africa, North
America, Pacific Pacific Rim, and South & Central America with each region
receiving one Gold and one Silver Award.
In order to streamline the workflow and imaging process, Fullerton deployed
the BPM solutions provided by Newgen. The implementation by Newgen
Software at FICCL covered the entire gamut of processes including loan
origination and booking, collections and prospect tracking, loan against gold
and early warning processes. FICCL currently has more than 825 branches
across the country.

“We are honoured to have been presented with this award. One of the most
important factors which contributed to our success has been the ease with
which business process change has been enabled through Newgen’s OmniFlow.
The solution has enabled us to do this quickly and economically”, said Pramod
Krishnamurthy, executive vice president, technology, FICCL.
Speaking of the successful implementation of their solution Rajvinder Kohli,
VP—Sales, Newgen Software Technologies, said, “The recognition is a
reflection of our commitment towards our customers to provide them with best
services. The deployment of OmniFlow BPM Suite at Fullerton India Credit
has created history by enabling them to open more than 800 branches in just
two years. The solution provides total automation for Loan Origination, CRM
and Collection processes, including implementation of a unified interface that
integrates four different core applications seamlessly.”
About the awards
The annual Global Awards for Excellence in BPM and Workflow is co-

39
sponsored by WfMC, BPMFocus.org and BPM.com and now in their 15th
year. While judging the winners, particular attention is paid to
implementations that have showed processes extending beyond the corporate
boundaries to support customers, suppliers, trading partners and more. There
are five geographical regions: Europe, Middle East Africa, North America,
Pacific Pacific Rim, and South and Central America. Each region receives one
Gold and one Silver Award.
About Newgen Software
Newgen Software Technologies Limited is the market leader in Business
Process Management (BPM) and Document Management System (DMS), with
a global footprint of about 700 installations in over 30 countries. More than 100
of these implementations are large, mission-critical solutions deployed at
world's leading BFSI, BPO and Fortune Global 500 companies.
Newgen is recognized by distinguished analyst firm IDC in its exclusive report
“Newgen Software: Global Leader in Business Process Management and
Document Management Solutions.”
Winner of prestigious awards, such as CNBC-TV18 “Emerging India Award
2008”, Frost and Sullivan's “Market Leadership Award for Document
Management System and Workflow Software & Services” and “Distinguished
Application Product Company” by NASSCOM, Newgen Software is an ISO
9001:2000, ISO 27001 certified and CMM Level 4 company.

Review of Article: 2
Second Review is based on the article published in similar web site i.e BPM.com.
This article reveal about the gold award won by Fullerton India Credit Company
Limited (FICCL) for Excellence in Business Process Management (BPM) and

40
Workflow with Newgen Software’s BPM solutions. The company has bagged the
award for the Pacific Rim region.
This Awards for Excellence in BPM and Workflow recognizes user organizations
that have demonstrably excelled in implementing innovative business process
solutions to meet strategic business objectives. The awards are given for five
geographical regions: Europe, Middle East Africa, North America, Pacific Pacific
Rim, and South & Central America with each region receiving one Gold and one
Silver Award.

41
Findings of the Study
• From the above study it is clear that 62% of the respondents have
taken loan under parivaar scheme and only 38% taken loan under
Vaypaar scheme. Therefore it shows that Fullerton India is favourable
in short term loan segment which is provided by Fullerton India under
Parivar scheme and especially for salaried individual. From the above
study it is clear that majority of the respondents got aware of different
loan scheme provided by Fullerton India through News paper.
Therefore company is require to advertise its schemes more frequently
in News paper which will help company in getting more new
customers.
• The above study depicts that most of the respondents availed loan of
amount ranging from Rs.2-5- Lakh. Therefore, if Fullerton India
introduce more scheme under this range to meet the different demand
of customers.
• The above study depicts that mostly the respondents preferred the
loan having repayment period from 2-5. Therefore the company needs
to add some more benefits to the long term period loan so that the
demand of long term loan will increase which increase the profit of
company, because as the repayment period is long than the source of
income (Interest) is sustain for long period.
• Most of the people are satisfied with the rate of interest charged and
by Fullerton India.
• Fullerton India mostly disbursed loan as secured loan, this will
provide the safety and it will avoid the increasing number of Non-

42
 performing asset and bad debts.
• Customers are the main source of new ideas, and thus their
suggestions are vital for every Company. From the above figure it is
clear that majority of the respondents are satisfied with the services of
their present bank so they do not want any change in the rate of interest
and services, but no one can satisfy everyone at same time, Fullerton
having respondents who are not satisfied with rate of interest and
services of Fullerton India.

Suggestions
The following suggestions have been formulated on the basis of above study. These
set of suggestions might help the Fullerton India to improve the quality of service
regarding loan provisions and simultaneously these suggestions help the Fullerton
India to tackle the competition prevailing in the market, thereby achieving success
in the future.
• Firstly Fullerton India should create awareness among the common public
about the various loan schemes of they are providing..
• In order to create awareness regarding the loan schemes an electronic
medium of media can put to use to advertise about the schemes and
services provided by Fullerton India. This would help to change the
attitude of the people regarding the Fullerton India.

43
• The interest rates should be regularly revised in order to attract more and
more customer. Some new plans should be introduced regularly to cater
the special needs of customer which provides them more offerings and
benefits.
• New strategies should be made by the company which enables them to
face the competition with other private leading Non Banking Financial
companies.
• The company needs to focus more on providing value added services to its
customer. This will create Brand loyalty among customer which indirectly
attract more and more customer because a satisfied customer will always
bring two more new customers.
• The management of company should be more efficient which enables in
quick processing of the task regarding loans disbursement and loan
collection, This will enable efficiency in the working capital cycle of the
company.
• There should be customer relationship management concept in the
company which help the company to understand the special need of
customer. Accordingly company formulate schemes should be maintained.
• The Fullerton India need to concentrate on new target market by
expanding its business through introducing new loan schemes and
services. Currently the company is proving loans under main two category
i.e Parivaar and vyapaar so, it looks limited. Therefore the company needs
to introduce new schemes to enter in to new target market.

44
References
 http://www.emeraldinsight.com/10.1108/02652320010315325

 http://www.emeraldinsight.com/10.1108/10610429610119469

 http://www.emeraldinsight.com/10.1108/08944310510556982

 http://www.emeraldinsight.com/10.1108/08876040410536495

 http://www.emeraldinsight.com/10.1108/02634500410525841

 http://www.emeraldinsight.com/10.1108/09604529610120294

 www.fullertonindia.com/

 www.fullertonindia.com/index.php?

option=com_facileforms&Itemid=225

45
Annexure:
Fullerton India Credit adopts Newgen’s BPM solution
Newgen Software Technologies Limited announced the successful implementation of
its BPM solution (based on Newgen OmniFlow™) at Fullerton India Credit Company
Limited (FICCL)..

CJ: Charu, 19 Oct 2007 Views:3306

NEWGEN SOFTWARE Technologies Limited, a market leader in Business

Process Management (BPM) and Enterprise Content Management (ECM), with
impeccable track record of implementing mission-critical workflow and document
imaging solutions, announced the successful implementation of its BPM solution
(based on Newgen OmniFlow™) at Fullerton India Credit Company Limited
(FICCL). FICCL, one of the largest capitalised Non Banking Finance Companies
(NBFC) in the country has taken a steep target of setting up a total of 500 branches
in the country by the end of 2007 (Till now, the company has set up over 350
branches).

Speaking of Newgen’s solution that has helped the FICCL in gearing up to meet its
targets, Pramod Krishnamurthy, executive vice president, technology, FICCL said,
“One of the key factors that has accounted for Fullerton India’s rapid growth and
ramping up of operations is the excellent support provided by the Newgen team.
Their state of the art workflow routing and imaging system (Omniflow) has met
our dynamic requirements very well; it has enabled us to provide high level of
customer service internally and externally. We look forward to a continued long-
term association with them as a valuable partner in our growth.”

Newgen’s implementation at FICCL covers the entire gamut of processes including

loan origination and booking, collections and prospect tracking, loan against gold
and early warning processes. FICCL currently has more than 350 branches across
the country. Number of concurrent users (users across the branches who can be
simultaneously logged into the system), which is already over 900, is expected to
grow up to 1500 in near future.

Speaking of the successful implementation at FICCL, Punit Jain, vice president,

sales and marketing, Newgen Software Technologies, said, “In line with our
objective to be an end-to-end BPM solution provider, our solution has offered
FICCL continuous process improvement, rapid results, visibility and control. With
46
this implementation, we are glad to support FICCL in reaching its steep targets
and establishing a strengthened network in India.”

Newgen OmniFlow™ 5.0 is a platform independent, scalable BPM solution that

enables automation of organisational business processes. It is a complete software
solution to design, deploy, modify, monitor and manage business processes,
involving minimal programming effort, and is easily deployable thereby enabling
enterprises to streamline their business processes for greater efficiencies. Built
using open technologies Newgen OmniFlow™ has seamless integration abilities
allowing it to be introduced into almost any existing IT infrastructure.

About Fullerton India Credit Company Limited

Fullerton India Credit Company Limited, a fully owned subsidiary of Fullerton

Financial Holdings, Singapore, is the fastest growing financial services company in
India with an equity capital base of US$150 million (Rs 7 billion). The company
follows a relationship led, community based business model with close proximity
and engagement with the customer to effectively reach out to them. In a short span
of time the company has disbursed over 1800 crore rupees, opened more than 400
branches spread across 150 locations and has more than 8000 employees on its
rolls.

About Newgen Software

Newgen Software Technologies Limited is a market leader in Business Process

Management (BPM) and Enterprise Content Management (ECM), with
impeccable track record of implementing mission-critical workflow and document
imaging solutions. We have a global footprint, with an installation base of more
than 700 customers in over 25 countries. More than 40 of our customers are Global
Fortune 500 companies. Having domain expertise in industry verticals such as
Banking, Financial Services, Insurance, BPO, Telecom, e-Governance and
manufacturing among others, we are known as one of the fastest implementers of
BPM solutions in the world.

The sales and support offices span across major cities in Asia, North America,
Europe, Africa and the Middle East.
Winner of several awards such as ‘Frost and Sullivan’s Market Leadership Award
for Document Management and Workflow Software & Services for 2006’ and
‘Distinguished Application Product Company’ by NASSCOM, Newgen Software is
47
an ISO 9001:2000 certified and CMM Level 4 company.

48
 Questionnaire

Name: Contact No:

1. Age of the Respondent:-

a. 18-28yrs □ b. 28-38 yrs □
c. 38-50 yrs □ d. More than 50 □

2. Annual Income of the Respondent:

a. Below 1 Lakh □ b. 1-2 Lakh □
c. 2-5 Lakh □ d. 2-5 Lakh □

3. Occupation of the Respondent:-

a. Government Employee □
b. Private Employee □
c. Businessman □

4. From which source you knew about the various schemes of Fullerton India?
a. News Paper □ b. Television Media □
c. Internet □ d. Friends □

5. Which type of loan you availed from Fullerton India?

a. Secured Loan □ b. Unsecured Loan □
c. Home Loan □ d. Home equity loan □

49
6. Through which scheme of Fullerton India you availed loan?
a. Parivaar □ b. Vyapaar □

7. What is your amount of loan?

a. 0 - 2,00,000 □ b. 2,00,000-5,00,000 □
c. 5,00,000-10,00,000 □ d. 10,00,000 or more □

8. What is the repayment period of your loan?

a. Below 2 Years □ b. 2-5 Years □
c. 5-10 Years □ d. More than 10 Years □

9. Are you satisfied with the rate of interest charge by Fullerton India?
a. Yes □ b. No □

10. What are the main factors which persuade you to avail loan
from Fullerton India?
a. Easy Repayment □ b. Easy Documentation
□
c. Attractive Rate of Interest □ d. Quick Processing
□
e. Others □

11. What grade you will assign to the services of Fullerton India?
a. Excellent □ b. Very Good □

50
 c. Good □ d. Fair
□
e. Poor □

Thank You

51